Exam 6: Designing Organizational Structure: Specialization and Coordination

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If control problems are due to the number and complexity of a company's products, which of the following structures is least appropriate?

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Horizontal differentiation begins when a company adopts a _________structure.

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Balancing centralization and decentralization is a concern in a geographic structure.

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A product division structure:

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The move to a more complex structure is based on all design choices except:

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Which of the following is an advantage of the multidivisional structure?

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A product division structure enables a company to compete in more than one business.

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Deciding how much decision- making authority to centralize at corporate headquarters and how much to decentralize to the divisions can be a disadvantage of the_________ structure.

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A matrix structure is characterized by_________ .

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Product team structures consist of groups of individuals whose allegiance is to specific products as opposed to specific functions.

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A construction equipment manufacturer sells tractors and other farming equipment to individual farmers, large agricultural cooperatives, food processors, and the government. The company operates solely in the Midwest region of the United States. Which of the following structures is most appropriate for this organization?

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A_________ structure is a design that groups people together on the basis of their common expertise and experience or because they use the same resources.

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People in a group can supervise each other in a functional structure.

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A matrix structure is a mechanistic structure.

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A geographic structure organizes people according to:

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Employees have two bosses in a __________structure.

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Transfer pricing is most commonly used in a_________ structure.

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As an organization grows, a functional structure does not create_________ .

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A large U.S. company operated in several businesses, including computers, disk drives, financial services, and defense satellites. Each division was self- contained. However, due to an economic downturn and changing market conditions, the company sold its noncore businesses of financial services and defense satellites in order to focus only on computer- related products. However, after making these sales, its costs were still high. What was the problem and how can it be resolved?

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Which of the following structures maximizes the use of employees?

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